What Is a Biweekly Mortgage Calculator?

Interested in paying your mortgage off faster and paying less interest over the life of your loan? It might be time to start making biweekly mortgage payments.

A monthly home mortgage payment is standard for many lenders. On a monthly schedule, you make one home loan payment monthly, resulting in 12 home mortgage payments each fiscal year. When you pay your mortgage on a biweekly schedule, nevertheless, you share of a home loan payment every two weeks. Over the course of a year, this leads to 26 half payments or 13 full home loan payments - one extra payment compared to a monthly schedule.

Curious what a biweekly home loan payment may suggest for your financial resources? Whether you're believing about switching a current home loan to biweekly payments or exploring a brand-new home loan, it's an excellent idea to get a clear image of your payment choices. Use our biweekly mortgage calculator to calculate the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly home loan calculator. First, get in the following info:

Principal loan balance: If you have not started paying your home mortgage yet, this will be the overall loan quantity. If you have actually been paying your mortgage, get in the loan balance that stays.
Rate of interest: Enter the existing rates of interest of your loan. Ensure to be precise down to the decimal point.
Loan term: The term of your loan is the number of years until the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

Once this details has been gotten in, all that's left to do is press "Calculate".

Next, it's time to see your reward results. The biweekly home loan calculator takes this details and produces 2 different estimations:

Monthly home mortgage payments: First, the biweekly mortgage calculator tells you the details of what a month-to-month payment may appear like. It computes your regular monthly payment quantity, the total interest you'll pay over the lifetime of your loan, and the typical interest you'll pay every month.
Biweekly home loan payments: Next, the biweekly mortgage calculator provides the biweekly payment info. You'll see the biweekly home mortgage payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll observe that by making biweekly home mortgage payments, you can decrease the total amount of interest paid over the life of the loan.

Under the calculator results, the biweekly home mortgage calculator shows a graph of your loan balance in time when using regular monthly payments (the black line) versus biweekly payments (the red area), listed here as the "Accelerated Balance".

You'll see that with biweekly home mortgage payments, your loan balance will decrease at a faster rate and you'll pay off your loan in less time. The more quickly you settle your loan, the less balance will stay that you need to pay interest on. That implies you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction between a regular monthly versus biweekly home mortgage payment schedule may seem very little, the extra month's home mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Paying off the loan faster: Because there's an extra loan payment every year, customers who make biweekly payments settle their loans much quicker than month-to-month payment customers.
Paying less overall interest: Because the loan is paid off much faster, less primary loan balance remains to pay interest on. With time, this results in considerably less interest paid. The greater your rate of interest, the more of a difference paying biweekly can make in the amount of interest you pay.
Building equity quicker: As you pay off your home loan, the amount you paid off becomes your equity in your house. When you pay off your home loan more quickly with biweekly payments, you'll develop equity quicker. This comes in convenient if you decide to offer your home before the loan is settled or if you wish to take out a home equity loan, home equity line of credit, or cash-out re-finance at some point.

Biweekly vs. Bimonthly Payments

Some lending institutions likewise offer the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, generally on the 1st and 15th. Just like making a monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, two times each month.

Making bimonthly mortgage payments can assist borrowers lower the amount of interest paid over the life of the loan. However, they do not have as big of an effect as biweekly mortgage payments, which help you settle your loan much faster, pay less interest with time, and build equity in your house quicker.

That stated, bimonthly loan payments might be a great option for some. People who make money on a bimonthly schedule might discover this payment schedule beneficial. Some might find that paying their loan immediately after getting their paycheck works well for their capital and budgeting efforts. Others might merely feel much better paying a smaller amount two times each month, instead of paying a lump amount all at once.

Related Calculators

Interested in other tools to enhance your financial resources? We use a range of calculators to assist you comprehend the monetary impacts of various types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have several different loans with several different rates? Our combined rate calculator averages these rates into a single rates of interest to help you better comprehend just how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly approximate your financial obligation service coverage ratio, which is a key metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home purchasers get approved for special loans with a series of advantages, like low loan rates, no down payment, and more. Use this calculator to determine what a VA mortgage may appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank declaration calculator to see what sort of home loan you can get approved for using bank declarations.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily buying down your interest rate is a smart choice based on your financial resources.
Debt Consolidation Calculator: A financial obligation combination loan rolls several debts into a single payment, generally with a lower rate. See what a loan like this may appear like based upon your current financial obligations.
VA Loan Affordability Calculator: Estimate how much home you can pay for when utilizing a VA loan.
Mortgage Payoff Calculator: See how altering your mortgage payment impacts your loan term and the quantity of interest paid with our home mortgage benefit calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our lease vs buy calculator can help you compare the short- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile loaning alternatives and an unequaled consumer experience. In addition to traditional home mortgage options like standard loans and VA loans, we likewise offer a wide variety of non-QM loans.

Wish to find out more about your mortgage alternatives? Reach out today and we can help you find a mortgage that finest aligns with your current finances and long-term objectives.

Find the very best loan for you. Reach out today!

Frequently Asked Questions

Is it much better to do regular monthly or biweekly home loan payments?

Finding the right payment schedule depends upon your specific requirements. Biweekly home loan payments may be a much better choice if:

You can pay for to pay more money each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It is essential to determine whether there's room in your budget plan for this cost.
You want to pay your loan off quicker: Depending upon the regards to your loan, making biweekly payments will enable you to pay off your loan far more quickly. Use our biweekly mortgage calculator with additional payments to see how additional payments impact your loan term.
You want to pay less interest: Because you settle your loan quicker with biweekly mortgage payments, your loan will have less time to accrue interest and you'll pay less interest with time. This can be especially beneficial to those with a relatively high mortgage rate.

What are the drawbacks of making biweekly mortgage payments?

The primary drawback of biweekly home loan payments is the greater annual expense. Because you make 26 half-payments throughout a year, or 13 full home mortgage payments, you'll make one extra loan payment yearly. Depending on your loan and financials, the additional payment can be a significant concern to handle.

In some cases, biweekly payments may feature additional expenses. Some home mortgage lenders charge an additional charge for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent idea to research whether changing to biweekly payments with your loan provider has any associated fees so that you can determine the real expense of biweekly payments.

Does making biweekly payments lower the quantity of interest I pay?

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the regard to your loan. Interest accrues as a portion of your loan's remaining balance. Because biweekly payments lower your remaining balance at a sped up pace, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the distinction in total interest paid on a mortgage that's paid month-to-month vs a mortgage that's paid biweekly.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage loan provider focusing on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as a market leader and professional in genuine estate financing. Lyons has actually been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to stay up to date with crucial modifications in the market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.